Javanomics reduces Javita to a numbers game
Javanomics is the official training division of the recently launched MLM coffee company, Javita.
I’m still not entirely sure when Javanomics plan to launch, but the launch date must be getting nearer as we’re starting to see more and more promotional and training material being released.
Last week I covered what Javanomics are calling the ‘sampling system‘. In essence Javita distributors are encouraged to rely on handing out samples to their prospects in order to convince them to join the company.
These samples are a hidden cost to distributors over time but from Javita’s perspective bolster their product sales so are encouraged.
Today I’m going to look at some more training material released by Javanomics, namely related to their vision on where they see Javita in 2012.
As it stands, Javita’s 2012 vision sees them hoping to create 100,000 debt free members, 10,000 home free members (uh home free, as in without homes?), 1,000 sig figure earners and 10 millionaires.
Whether or not Javita will reach this goal is of course debatable but I suppose in the interim you need to create some motivation for your members to get out there and market the company and its coffee.
What is interesting however is the possible methodology being touted by Javanomics in order to help Javita’s sales field reach the company’s projected goals.
Unfortunately when you boil down the hype and look at how exactly Javanomics are marketing Javita and encouraging Javita members to market the company, all we’re really looking at here is a numbers game.
Recruit enough people and encourage them to do the same and watch the dollars and success start rolling in.
Disguising recruitment as leverage, Javanomics have put out a flyer titled ‘The Power of Leverage‘.
In this leverage flyer, Javanomics asks a simple question;
‘How would you like to add $16,000 per month to your income by finding one person per month by sharing coffee?’
Sounds simple enough, and it would be if you as a Javita distributor were indeed actually just ‘sharing coffee‘.
What you’re really doing however is sharing the Javita business opportunity.
To get the $16,000 a month income Javanomics use to lure people in with, Javita members would need to recruit 1 person a month and in turn get each of those people recruited to recruit 1 new person per month for 12 months.
If everybody you recruited introduced one new member to Javita over a 12 month period you’d be looking at a downline of 4096 members and a monthly income of $16,384.
Naturally this income isn’t based on product sales, but rather the mandatory autoship business volume (BV) required to be purchased by Javita distributors every month.
Whether or not the coffee bought is actually used or not is irrelevant, this is purely a numbers game which relies on autoship to generate an income.
Unfortunately this approach is naturally unsustainable over the long term. Take the $16,000 example Javanomics are pushing for example.
After 12 months you’ve got 4096 members in your downline and earn $16,384. Naturally your downline want a piece of that $16,000 a month income and are they themselves trying to build their own 4,000 strong downline.
Meanwhile, in order to maintain your income you’ve got to make sure your downline continues to recruit so that others don’t get disillusioned and leave the company.
Let’s depart from reality for a second and assume you manage to maintain this ‘everyone in your downline recruits one person a month perpetually’ nonsense being pushed. After an additional 6 months your 4096 downline has ballooned out to 262,144 members.
The fact that this number needs to keep doubling every month perpetually withstanding, with just one hundred people trying to achieve a Javita $16,000 a month lifestyle, you’re looking at the recruitment of over 2.5 million Javita members.
Surely even the most positive of MLM marketers would consider this far fetched for a new MLM startup to achieve within a year and a half post launch.
Getting back into reality however, even dialling the numbers back a bit shows just how recruitment demanding this ‘power of leverage’ system is.
If we go back to the 4096 members required to achieve a $16,000 a month income, if just half of those people were aiming for the same goal, you’d be looking at the recruitment of 8,388,608 members.
Keep in mind of course that this is simply off one downline. When you consider that each of these 4096 people will go on to create their own downline branches, the numbers get even more ridiculous.
And we haven’t even discussed attrition. Anyone who thinks you’re going to simply be able to get everyone in your team to recruit a new person each month for 12 months straight to the tune of 1000’s is simply put, out of their mind.
Despite recruitment not being the only way to run your Javita business, when I first analysed the business opportunity I noted that
unfortunately with an autoship requirement for Javita members to stay active and eligible to participate in the compensation plan, this could mean that some members simply bolster their organisation numbers by putting people on autoship and moving on to recruit others.
Acknowledging that it was possible but clearly ‘not the easiest way to run a MLM business‘, it’s disappointing to see Javita’s official training arm Javanomics they themselves pushing the recruitment driven marketing angle.
From the Javanomics material it’s clear that the product doesn’t matter. What’s important is the $16,000 monthly income within 12 months and the fact that you only have to find one person per month to put on autoship (as well as encouraging those you recruit to do the same).
Obviously being sold on the idea those using this method of marketing would then go on to sell the same monthly income benefits to new recruits. Over time the actual product, which should be the focal point of the business becomes irrelevant.
Whenever an autoship component is involved it’s always a fine line between relying on it and utilising it to derive an income. In the case of Javanomics latest marketing material, clearly they and by proxy Javita have no problems with their members solely relying on recruitment to build their businesses.
Given that, as demonstrated, the numbers in the long term add up – good luck reaching those projected target numbers in 2012 guys.